Hiring workers on a limited-time contract can be beneficial for the company and the employee. The company can hire someone with expertise for a project without adding to its permanent workforce. The contract worker can try out the company and he -- and the firm -- may or may not decide to continue the relationship.

Companies that have had layoffs and are gun-shy about hiring more workers often opt for contract workers.

Shea said ending a relationship with a contract employee is not as ``emotionally wrenching`` because there is no surprise -- the employee knows his job will end when the contract does. Or, it`s a nice surprise: The firm wants him to stay on.

Motorola, which has plants in Boynton Beach and Plantation, has factory workers, office and technical help who work on a contract basis. Company spokesman George Mahoney won`t say how many are on contract, but he admits, ``it`s a preventative measure against layoffs where and if there`s a tight situation.`` Motorola laid off 125 workers in early 1985 but then rehired most workers as the plant grew. The Boynton Beach plant now employs 1,200 and the Plantation plant 3,000.

Modular Computer Systems in Fort Lauderdale, which last year laid off 120 workers due to slower than expected orders, has contract workers in all areas, said Bob Turkovic, the company`s spokesman. Contract workers are used in marketing, engineering, computer programming and finance.

``It provides us with a quick fix measure to get the job done,`` Turkovic said. ``And it`s a temporary position so it doesn`t increase our head count or costs.``

When permanent staff numbers are limited, contract workers often can be charged to technical services or other budget items. And, with a contract worker, the company doesn`t have to pay health insurance, pensions, Social Security or other benefits that can cost 35 percent of a worker`s salary.

Many government contractors use contract workers, said John Rudolph, a recruiter with CDI Corp. in Orlando. The contract workers provide a cushion to shield the company`s permanent staff from the highs and lows of cyclical government work.

CDI Corp. provides contract workers for Pratt & Whitney`s plant in northwestern Palm Beach County. Pratt has an average of 100 contract design engineers out of more than 1,000 on its permanent staff.

``It goes up and down as different work peaks are hit,`` said Dale Smith, Pratt`s spokesman. ``It enables us to keep our workforce stable so we`re not hiring and firing to respond to work commitments.``

High-tech companies usually hire more contract workers than other companies, Shea said.

Often, companies need someone`s particular expertise for a short period. ``When a company is not sure how long a product is going to stay on the cutting edge, they hire people by the project,`` Shea explained.

American Express in Fort Lauderdale has had up to 200 employees on a limited- time contract in its Business Systems Development division. Currently, only six workers are computer programmers or programmer analysts on a contract basis.

Herb Brandt, vice president of human resources at American Express, said contract workers tend to be hired when business is good, ``when you have a sudden spurt in demand.``